The State Department of Economic Development created the Business Service Group (BSG) to provide special services to out-of-state businesses that consider relocating in the state. Within two (2) years, the BSG put together a good record of helping more than 35 businesses move in the state efficiently. The BSG was staffed with a competent Department Manager and Business Development (BD) Specialists. BD specialists are responsible for working and identifying the needs of each business and making sure that these needs are met. Each specialist had a quota of contacts and services to make each month. Charles Thompson was made acting supervisor of BSG after the hasty departure of the previous Department Manager. After three (3) weeks, he was then promoted to manager. Charles was originally hired as a specialist, was then transferred to another related department to serve as assistant manager. Charles was ecstatic when he learned he was moving back to BSG together with John Willis, who is now the senior specialist of BSG. Suzy Harris, Barbara Garrett, and Tom Rollins were added to the team thereafter, and with a fairly high level of experience in the business level function, these individuals performed really well. In spite of the consistent record, Audrey Downs, Head of the Economic Development, felt that there was still room for improvement. Audrey wanted to institute a Service Quality Management program in the company and wants to start in the Business Services Group. Charles relays the information to the staff the next Monday morning. In order to start the program, Charles told them to achieve the following immediately: Raise the service quotas by 20% Submit anyone who failed to meet the quota to formal disciplinary action. The specialists didn't give any comments but had exhibited noticeable changes in how they treated Charles over the next week. They were more distant, hostile, and tense around him. After two (2) weeks, Charles reviewed the performance records of the specialists and found that Suzy Harris hadn't met her quota. Being true to his words, Charles issued a written reprimand to her, which made Suzy speechless but angered. After two (2) days, Suzy has filed a grievance in the Personnel Department against Charles. John Willis requested for transfer, and Barbara is preparing to put in a request, too. Now, none of the employees talk to Charles, and he noticed how services to certain businesses have slightly slipped. Questions: 1. What were the problem/s discussed in the study? How did these problems influence staff performance? What motivational theory can explain the actions of Charles's staff to his decisions? Justify your 2. answer. 3. If you are Charles, what decisions would you replace and why? And what decisions are you going to implement?